Page 108 - RusRPTAug24

increase in fixed capital investment for the year after a 9.8% jump last year.
Although companies expect growth in capital investments in the next six months, the pace will slow down. Investment activity of enterprises continues to be limited by a high level of uncertainty, as well as a shortage of personnel, it is specified there.
The growth of investments in Russia may reach 6 - 7% by the end of 2024, Deputy Chairman and Chief Economist of VEB.RF Andrey Klepach said. "There is no certainty. Our investments this year can be high, I think [the growth will be] 6.5% (from 6 to 7%), but next year they may change significantly," he said. According to him, the negative factors for business include an increase in the profit tax rate and the dynamics of the key rate. He added that Russia’s GDP growth by the end of 2024 could reach 3.8%.
Investment in 35 largest projects in the North Caucasus currently stands at 1.7 trillion rubles ($19bn), Russian Deputy Prime Minister Alexander Novak said in an interview with TASS Director General Andrey Kondrashov on the sidelines of the Caucasus Investment Forum. "As of today, on largest projects that are in the focus of the federal government’s attention, 35 projects in seven regions, alone <...> investment totals 1.7 trillion rubles," Novak who is in charge of the North Caucasus Federal District, said. A total of 300bn rubles ($3.3bn) have already been invested in the economy of Caucasus, he said, adding that the remaining funds would be invested in projects in coming years. "The main thing is that those investment creates a multiplier effect. For example, when funds are invested in the development of transport and logistics infrastructure, the development of highways, airports, it means that the possibilities for developing other types of business and other types of economy increase," Deputy PM said.
4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
Unemployment in Russia remains at all-time lows, while the number of people employed continues to grow, reaching 74.1mn versus 73.4mn a year ago, President Vladimir Putin said at a meeting with government members. "Compared to last year - last year there were 73.4mn employed people - this year there are already 74.1mn," the President said. "More than 2,000 vacancies are open, and unemployment is at a historically low level of 2.6%," the head of state added. According to the Federal Statistics Service, record low unemployment rates have persisted for the second month. Only 2mn people aged 15 and over in the entire country could be classified as unemployed, according to international methodology.
108 RUSSIA Country Report August 2024 www.intellinews.com